From hype to reality big data is slowly making its way into the financial sector. Over the last few years the sector has seen a few large deployments in order to improve customer experience, reduce churn, facilitate modern banking and minimize risk.
Big data and analytics hold a tremendous potential to power a modern financial sector, improving efficiency, risk management and customer engagement in a huge way. As you plan budget for IT spend this year, let’s look at some of the key big data trends and how they will play out as we gradually transition to the digital banking landscape.
Blockchain is making its way into the financial services
Over the last year Blockchain technology has gained quite a popularity within the financial sector. Although, it is in its nascent stage, the technology is surrounded by a lot of ambiguity in terms of contractual legalities and its usage. Despite this, blockchain is seeing a lot of traction for the advantages it offers in terms of increased transparency, optimized effort, and improved transaction management, especially for recurring workflows. Blockchain also hold a great potential in enhancing big data analytics and security. As some of the financial powerhouses commit to go live with this technology, 2017 will see a lot of developments where big data platforms will be integrated with blockchain to offer a connected centralized network that can power digital transactions.
Machine learning is redefining operational efficiency
The advancements in machine learning has played a major role in fueling big data adoption in banking and financial services. Easy availability and management of structured and unstructured data backed by constantly evolving algorithms is increasingly enabling banks and other institutions to improve their operational efficiency, fraud detection, risk management and marketing strategies. These are only a few key benefits of machine learning techniques, but this trend is set to grow and evolve with newer technology developments where big data will continue to add tremendous value across business process.
Mobile apps are powering deeper customer connect
Growing use of smartphones and social media is compelling banks and financial institutions to transform the way they connect with their customers. Across the globe, players are investing heavily in mobile apps to offer on-the-go banking facility to their end-users. Use of mobile apps for banking transactions have also opened avenues for banks to capture, mine and use data to derive meaningful insights into customer behavior and preferences. This is enabling banks to drive deeper engagement by offering relevant value-added services.
Looking ahead while ensuring data security
2017 will be a crucial year that will witness successful large big data and digital deployments, making big data pervasive and enabling players to tap into undiscovered potential in terms of productivity and sales. As the financial sector continues to look ahead towards innovative technology advances, data security will be at the forefront of big data initiatives. This will pave the way for newer technology development to strengthen data privacy, ensure regulatory compliance and facilitate fraud detection and prevention.